London Councils has welcomed the government’s move towards placing housing revenue account (HRA) borrowing under the prudential code, in line with other types of local authority borrowing.
Cllr Darren Rodwell, London Councils’ Executive Member for Housing and Planning, said:
“After years of calling for boroughs to be empowered to build more council homes, we’re pleased to see the government taking firm steps in this direction.
“Lifting the HRA borrowing cap and allowing prudential borrowing will make it far more financially viable for local authorities to invest in new housing.
“The government should now take the next steps in giving councils the solid funding base required for housebuilding at significant scale. We need to see long-term certainty over social rent levels and an end to restrictions on the use of Right to Buy receipts so that all money raised from council house sales goes back into building more homes.
“London boroughs will certainly be determined to make the most of these new powers and to work with the government in delivering the new generation of council houses we all want to see."